XTrackers MSCI World Information Technology UCITS ETF 1C
| Issuer: Xtrackers |
| Asset Class: Equity |
| TER: 25bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 14 Aug 2023 |
| Ticker: XXTW |
| ISIN: IE00BM67HT60 |
This investment provides targeted exposure to the global information technology sector, tapping into one of the most dynamic and innovative segments of the modern economy. The fund invests in a diversified portfolio of leading large and mid-capitalisation companies from developed countries around the world. These companies are at the forefront of driving long-term structural trends such as the digital transformation of industries, the expansion of cloud computing, the proliferation of artificial intelligence, and advancements in cybersecurity. By holding a basket of securities that includes hardware manufacturers, software developers, semiconductor producers, and IT service providers, the portfolio captures the breadth and depth of the global tech landscape.
The strategy is designed to replicate the performance of a specific benchmark index focused on the information technology sector within the MSCI World universe. This passive approach offers a cost-effective and transparent method for gaining access to this high-growth potential area without the need for individual stock selection. The underlying companies are established leaders in their respective fields, primarily located in North America, but with significant representation from other developed regions like Europe and Asia. As a result, investors can achieve broad geographic diversification within the technology theme, mitigating single-country risk while maintaining a concentrated sector focus.
This product is well-suited for investors seeking to supplement a core portfolio with a strategic allocation to a sector poised for continued growth. It allows for a direct play on the ongoing technological revolution that impacts nearly every aspect of life and business. However, it is important to acknowledge the inherent risks associated with sector-specific investing. The technology industry can experience higher levels of volatility compared to the broader market and is subject to rapid shifts in consumer preferences, competitive pressures, and regulatory oversight.
